LETTER TO SHAREHOLDERS
Dear Shareholder:
As your Series ended its semi-annual reporting period on January 31,
1995, the net asset value for Class A shares was $12.49. Income dividends of
approximately $.356 per share were paid, representing an annualized
distribution rate per share of 5.39% based on the January 31 maximum closing
offering price of $13.08. Class B shares ended the period with a net asset
value of $12.50. Income dividends of approximately $.323 per share were paid,
representing an annualized distribution rate per share of 5.12% based on the
January 31 closing net asset value. We are pleased to report that all
dividends paid from net investment income during this period were exempt from
Federal and Connecticut State personal income taxes.*
The municipal market declined over most of the reporting period as the
economy continued to grow and inflationary fears increased. The bond market
experienced one of its worst declines ever during 1994, as the Federal
Reserve Board took measures on six occasions during the year to prevent a
surge in inflation.
While some acceleration in the economy had been expected, the robust
growth experienced throughout the past year was clearly a surprise to most
economists and market participants alike. Generally, it had been anticipated
that the higher interest rates engendered by the Federal Reserve Board's
tighter monetary policy, begun in the first quarter of 1994, would slow
economic expansion before year-end.
Prior to the end of 1994, there were few signs that the economy was
slowing. In fact, a wide array of economic indexes were showing growth at
levels that have proven to be accurate forecasters of upward inflationary
trends in past recoveries. However, some signs of a slowdown in economic
growth did emerge with data released in 1995.
The first sign of a slowing economy, which produced a pronounced market
rally, occurred with the release of the December retail sales figures. Retail
sales during this seasonally important period fell short of analysts'
expectations, thereby fueling a strong upward movement in bond prices. In
addition, the January retail sales figures suggested a continuation of
sluggish sales growth. Tempering this optimism, however, was the knowledge
that for 1994, retail sales increased 7.6% for the year -- the strongest
annual showing in 10 years.
While the case for a significant slowing of the economy has yet to be
convincingly made, we believe the potential is growing with each piece of
negative economic news. In addition, there is substantial data to indicate
that while the economy has been growing at a 4% rate, inflation has remained
subdued. The fear of inflation caused by positive economic news, such as
rapid job growth, high rates of capacity utilization and increased home
sales, appears to have been largely overcome by the continuing low level of
inflation. It may well be that the much talked about economic "soft landing"
is unfolding.
We believe there are many signs that the economy may be able to avoid an
inflationary surge. For example, increases in commodity prices have, as yet,
not been evident in prices paid by the consumer, although it may only be a
matter of time before this occurs. Likewise, wage inflation remains
practically nonexistent but traditionally lags a strong economic upsurge.
Another positive sign is the flattening yield curve for government
securities. This generally means that the market believes the economy will
slow in the coming months.
Recently, the markets feared that the Fed would be reluctant to act
aggressively against inflation after the Orange County bankruptcy and the
Mexican peso devaluation. With its most recent increase in rates, the Federal
Reserve Board confirmed its determination to limit inflation by slowing
economic growth. To date the markets have reacted very favorably to the Fed's
action, producing a strong rally early in 1995.
Our strategy in this environment is one of caution. We believe that
inflationary pressures will rise in the coming months but that vigilance by
the Federal Reserve Board will limit these threats to bond values.
We have enclosed a current Statement of Investments and recent financial
statements for your review. We greatly appreciate your investment in the Fund
and look forward to serving your investment needs in the future.
Very truly yours,
(logo signature)
Richard J. Moynihan
Director of Municipal Portfolio Management
The Dreyfus Corporation
February 15, 1995
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders. Income may be subject to some state and
local taxes for non-Connecticut residents. Capital gains, if any, may be
subject to Federal, state and local taxes.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, Connecticut Series
STATEMENT OF INVESTMENTS JANUARY 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--95.0% AMOUNT VALUE
------------- -------------
<S> <C> <C>
CONNECTICUT:
Cheshire:
5.80%, 8/15/2010 (Insured; FGIC)........................................ $ 500,000 $ 491,450
5.85%, 8/15/2011 (Insured; FGIC)........................................ 675,000 660,987
Connecticut:
Airport Revenue, Refunding 7.20%, 10/1/1997 (Insured; FGIC)............. 220,000 230,857
COP (Middletown Courthouse Facilities Project) 5.90%, 12/15/2001 (Insured; MBIA) 250,000 256,500
Special Tax Oligation Revenue (Transportation Infrastructure)
5.65%, 4/1/2013 (Insured; FGIC)....................................... 1,500,000 1,413,780
Connecticut Development Authority:
Health Care Revenue (Masonic) 6.50%, 8/1/2020 (Insured; AMBAC).......... 250,000 251,470
Water Facility Revenue, Refunding:
(Bridgeport Hydraulic) 5.60%, 6/1/2028 (Insured; MBIA)................ 700,000 616,210
(Connecticut Water Co. Project) 5.875%, 9/1/2022 (Insured; AMBAC)..... 250,000 229,763
Connecticut Health and Educational Facilities Authority, Revenue:
(Bridgeport Hospital) 6.625%, 7/1/2018 (Insured; MBIA).................. 700,000 717,423
(Connecticut College) 6.625%, 7/1/2011 (Insured; MBIA).................. 200,000 206,420
(Danbury Hospital) 6.50%, 7/1/2014 (Insured; MBIA)...................... 250,000 254,678
(Lawrence and Memorial Hospital):
7%, 7/1/2020 (Insured; MBIA).......................................... 250,000 271,440
6.25%, 7/1/2022 (Insured; MBIA)....................................... 285,000 300,419
(Manchester Memorial Hospital) 5.75%, 7/1/2022 (Insured; MBIA).......... 100,000 91,884
(New Britain General Hospital):
6.125%, 7/1/2014 (Insured; AMBAC)..................................... 1,000,000 992,640
6%, 7/1/2024 (Insured; AMBAC)......................................... 200,000 191,740
(Newington Children's Hospital):
6.05%, 7/1/2010 (Insured; MBIA)....................................... 235,000 236,137
6.10%, 7/1/2011 (Insured; MBIA)....................................... 250,000 251,208
6.25%, 7/1/2015 (Insured; MBIA)....................................... 500,000 499,390
(Norwalk Hospital) 6.25%, 7/1/2022 (Insured; MBIA)...................... 1,260,000 1,250,109
(Refunding-Hospital of Saint Raphael) 6.625%, 7/1/2014 (Insured; AMBAC). 250,000 256,375
(Saint Francis Hospital and Medical Center) 5%, 7/1/2023 (Insured; FGIC) 760,000 611,390
(Waterbury Hospital) 7%, 7/1/2020 (Insured; FSA)........................ 1,000,000 1,042,690
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
6.20%, 5/15/2012 (Insured; MBIA)........................................ 1,000,000 978,120
6.40%, 5/15/2015 (Insured; MBIA)........................................ 1,000,000 987,580
6.30%, 5/15/2024 (Insured; MBIA)........................................ 1,000,000 959,950
Connecticut Municipal Electric Energy Cooperative, Power Supply Systems
Revenue
7%, 1/1/2016 (Insured; AMBAC)........................................... 310,000 320,205
Derby 5.90%, 5/15/2010 (Insured; AMBAC)..................................... 615,000 613,709
East Hampton:
5.80%, 7/15/2010 (Insured; FGIC)........................................ 295,000 292,613
5.90%, 7/15/2011 (Insured; FGIC)........................................ 320,000 317,331
Meriden 5.50%, 11/15/2001 (Insured; MBIA)................................... 250,000 255,080
PREMIER INSURED MUNICIPAL BOND FUND, Connecticut Series
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -------------
CONNECTICUT (CONTINUED)
New Britain 5.375%, 3/1/2003 (Insured; MBIA)................................ $ 250,000 $ 246,527
New Haven, Air Rights Parking Facility Revenue 6.50%, 12/1/2015 (Insured; MBIA) 500,000 510,710
New London 5.10%, 10/1/2002 (Insured; MBIA)................................. 275,000 267,668
Plainfield 5.80%, 8/1/2001 (Insured; MBIA).................................. 250,000 259,717
Regional School District Number 5:
5.90%, 1/15/2010 (Insured; MBIA)........................................ 280,000 279,437
5.90%, 1/15/2011 (Insured; MBIA)........................................ 320,000 318,029
South Central Regional Water Authority, Water Systems Revenue
5.75%, 8/1/2012 (Insured; FGIC)......................................... 250,000 242,232
Waterbury, Refunding 4.90%, 4/15/2002 (Insured; FGIC)....................... 280,000 268,086
Woodstock:
5.85%, 2/15/2009 (Insured; FGIC)........................................ 345,000 345,611
6%, 2/15/2013 (Insured; FGIC)........................................... 340,000 337,399
-------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $19,234,682).................... $19,124,964
============
SHORT-TERM MUNICIPAL INVESTMENTS--5.0%
U. S. RELATED;
Puerto Rico Electric Power Authority, Power Revenue
4.34% (Insured; FSA) (a) (cost $1,000,000).............................. $ 1,000,000 $ 1,000,000
============
TOTAL MUNICIPAL INVESTMENTS--100.0%
(cost $20,234,682)...................................................... $20,124,964
============
</TABLE>
SUMMARY OF ABBREVIATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
AAA Aaa AAA 100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Fitch currently provides creditworthiness information for a limited
number of investments.
(c) At January 31, 1995, 47.9% of the Series' net assets are insured by
MBIA.
(d) At January 31, 1995, the Series had $6,967,521 (33.3% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from health care projects.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, Connecticut Series
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value (cost $20,234,682)-see statement.... $20,124,964
Cash.................................................................... 319,351
Interest receivable..................................................... 260,086
Receivable for shares of Beneficial Interest subscribed................. 228,666
Prepaid expenses........................................................ 12,939
Due from The Dreyfus Corporation........................................ 9,274
-------------
20,955,280
LIABILITIES:
Due to Distributor...................................................... $ 8,609
Accrued expenses and other liabilities.................................. 40,731 49,340
---------- -------------
NET ASSETS ................................................................ $20,905,940
============
REPRESENTED BY:
Paid-in capital......................................................... $21,035,690
Accumulated net realized (loss) on investments.......................... (20,032)
Accumulated net unrealized (depreciation) on investments-Note 3......... (109,718)
-------------
NET ASSETS at value......................................................... $20,905,940
============
Shares of Beneficial Interest outstanding:
Class A Shares (unlimited number of $.001 par value shares authorized).. 806,968
============
Class B Shares (unlimited number of $.001 par value shares authorized).. 865,849
============
NET ASSET VALUE per share:
Class A Shares ($10,081,427 / 806,968 shares)........................... $12.49
=======
Class B Shares ($10,824,513 / 865,849 shares)........................... $12.50
=======
STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1995 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 523,012
EXPENSES:
Management fee-Note 2(a).............................................. $ 50,672
Shareholder servicing costs-Note 2(c)................................. 37,506
Distribution fees (Class B shares)-Note 2(b).......................... 22,379
Legal fees............................................................ 10,426
Auditing fees......................................................... 4,878
Registration fees..................................................... 4,069
Prospectus and shareholders' reports.................................. 3,834
Organization expenses................................................. 1,310
Custodian fees........................................................ 1,118
Trustees' fees and expenses-Note 2(d)................................. 1,011
Miscellaneous......................................................... 2,210
----------
139,413
Less_expense reimbursement from Manager due to undertaking_Note 2(a).. 117,034
----------
TOTAL EXPENSES.................................................... 22,379
----------
INVESTMENT INCOME--NET............................................ 500,633
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (20,032)
Net unrealized (depreciation) on investments............................ (248,595)
----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (268,627)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $232,006
=========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, Connecticut Series
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JULY 31, JANUARY 31, 1995
1994* (UNAUDITED)
------------- ------------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 67,908 $ 500,633
Net realized (loss) on investments................................... -- (20,032)
Net unrealized appreciation (depreciation) on investments for the period 138,877 (248,595)
--------------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... 206,785 232,006
--------------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares..................................................... (38,771) (269,872)
Class B shares..................................................... (29,137) (230,761)
--------------- -----------
TOTAL DIVIDENDS................................................ (67,908) (500,633)
--------------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................................... 8,721,961 3,591,387
Class B shares..................................................... 7,229,976 5,206,195
Dividends reinvested:
Class A shares..................................................... 26,966 159,857
Class B shares..................................................... 18,182 136,874
Cost of shares redeemed:
Class A shares..................................................... (391,623) (1,914,816)
Class B shares..................................................... (390,000) (1,359,269)
--------------- -----------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS... 15,215,462 5,820,228
--------------- -----------
TOTAL INCREASE IN NET ASSETS................................. 15,354,339 5,551,601
NET ASSETS:
Beginning of period.................................................. -- 15,354,339
--------------- -----------
End of period........................................................ $15,354,339 $20,905,940
============ ===========
</TABLE>
<TABLE>
<CAPTION>
SHARES
-------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------- -----------------------------------
YEAR ENDEDSIX MONTHS ENDED YEAR ENDEDSIX MONTHS ENDED
JULY 31, JANUARY 31, 1995 JULY 31, JANUARY 31, 1995
1994* (UNAUDITED) 1994* (UNAUDITED)
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................... 689,991 289,078 570,954 421,840
Shares issued for dividends reinvested 2,120 13,013 1,431 11,149
Shares redeemed...................... (30,621) (156,613) (30,492) (109,033)
---------- ---------- ---------- ----------
NET INCREASE IN SHARES OUTSTANDING 661,490 145,478 541,893 323,956
========== ========== ========== ==========
</TABLE>
* From May 5, 1994 (commencement of operations) to July 31, 1994.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, Connecticut Series
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.
CLASS A SHARES CLASS B SHARES
----------------------------------- --------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JULY 31, JANUARY 31, 1995 JULY 31, JANUARY 31, 1995
PER SHARE DATA: 1994(1) (UNAUDITED) 1994(1) (UNAUDITED)
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $12.50 $12.76 $12.50 $12.76
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net........... .19 .36 .17 .32
Net realized and unrealized gain (loss)
on investments................. .26 (.27) .26 (.26)
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS .45 .09 .43 .06
------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment income--net (.19) (.36) (.17) (.32)
------- ------- ------- -------
Net asset value, end of period... $12.76 $12.49 $12.76 $12.50
======= ====== ====== =======
TOTAL INVESTMENT RETURN (2).......... 3.61%(3) 1.49%(4) 3.49%(3) 1.11%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(4) -- -- .50% .50%
Ratio of net investment income to
average net assets(4).......... 5.17% 5.70% 4.77% 5.16%
Decrease reflected in above expense ratios
due to undertaking by the Manager
(limited to the expense limitation provision
of the management agreement)(4) 2.50% 1.26% 2.50% 1.28%
Portfolio Turnover Rate(3)....... -- 6.51% -- 6.51%
Net Assets, end of period (000's Omitted) $8,438 $10,081 $6,916 $10,825
</TABLE>
(1) From May 5, 1994 (commencement of operations) to July 31, 1994.
(2) Exclusive of sales load.
(3) Not annualized.
(4) Annualized.
See independent accountants' review report and notes to financial statements.
PREMIER INSURED MUNICIPAL BOND FUND, Connecticut Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Premier Insured Municipal Bond Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering six series including the Connecticut Series ("the Series"). Dreyfus
Service Corporation, until August 24, 1994, acted as the distributor of the
Fund's shares. Dreyfus Service Corporation is a wholly-owned subsidiary of
The Dreyfus Corporation ("Manager"). Effective August 24, 1994, the Manager
became a direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
The Series offers both Class A and Class B shares. Class A shares are
subject to a sales charge imposed at the time of purchase and Class B shares
are subject to a contingent deferred sales charge imposed at the time of
redemption on redemptions made within five years of purchase. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
(A) PORTFOLIO VALUATION: The Series' investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Series follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state and
certain of its public bodies and municipalities may affect the ability of
issuers within the state to pay interest on, or repay principal of, municipal
obligations held by the Series.
PREMIER INSURED MUNICIPAL BOND FUND, Connecticut Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Series to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Series may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Series not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series to qualify as a
regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Internal Revenue Code, and to
make distributions of income and net realized capital gain sufficient to
relieve it from substantially all Federal income and excise taxes.
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the average
daily value of the Series' net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Series'
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series for any full fiscal year. The most stringent
state expense limitation applicable to the Series presently requires
reimbursement of expenses in any full fiscal year that such expenses
(exclusive of distribution expenses and certain expenses as described above)
exceed 21/2% of the first $30 million, 2% of the next $70 million and 11/2%
of the excess over $100 million of the average value of the Series' net
assets in accordance with California "blue sky" regulations. However, the
Manager has undertaken from August 1, 1994 through March 31, 1995 or until
such time as the net assets of the series exceed $25 million, regardless of
whether they remain at that level, to reimburse all fees and expenses of the
Series (excluding 12b-1 distribution plan fees and certain expenses as
described above). The expense reimbursement, pursuant to the undertaking,
amounted to $117,034 for the six months ended January 31, 1995.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
Dreyfus Service Corporation retained $7,774 during the six months ended
January 31, 1995 from commissions earned on sales of the Series' Class A
shares.
Prior to August 24, 1994, no amounts were retained by Dreyfus Service
Corporation from contingent deferred sales charges imposed upon redemptions
of the Series' Class B shares.
(B) On August 3, 1994, Series' shareholders approved the adoption of a
new Distribution Plan with respect to Class B shares only (the "Class B
Distribution Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the
Class B Distribution Plan, effective August 24, 1994, the Fund pays the
Distributor for distributing the Series' Class B shares at an annual rate of
.50 of 1% of the value of the average daily net assets of Class B shares.
Prior to August 24, 1994, the Distribution Plan ("prior Class B
Distribution Plan") provided that the Fund pays Dreyfus Service Corporation
at an annual rate of .50 of 1% of the value of the Series' Class B shares
average daily net assets, for the costs and expenses in connection with
advertising, marketing and distributing the Series' Class B shares. Dreyfus
Service Corporation made payments to one or more Service Agents based on the
value of the Series' Class B shares owned by clients of the Service Agents.
PREMIER INSURED MUNICIPAL BOND FUND, Connecticut Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
During the six months ended January 31, 1995, $20,135 was charged to the
Series pursuant to the Class B Distribution Plan and $2,244 was charged to
the Series pursuant to the prior Class B Distribution Plan.
(C) Under the Shareholder Services Plan, the Series pays the Distributor,
at an annual rate of .25 of 1% of the value of the average daily net assets
of Class A and Class B shares for servicing shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Series and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to Serv
ice Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. From August 1, 1994 through August 23,
1994, $1,362 and $1,122 were charged to Class A and Class B shares,
respectively, by Dreyfus Service Corporation. From August 24, 1994 through
January 31, 1995, $10,481 and $10,068 were charged to Class A and Class B
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan [See Note 2(a)].
(D) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
amounted to $13,150,858 and $7,325,637, respectively, for the six months
ended January 31, 1995, and consisted entirely of long-term and short-term
municipal investments.
At January 31, 1995, accumulated net unrealized depreciation on
investments was $109,718 consisting of $131,126 gross unrealized appreciation
and $240,844 gross unrealized depreciation.
At January 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
PREMIER INSURED MUNICIPAL BOND FUND, Connecticut Series
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER INSURED MUNICIPAL BOND FUND, CONNECTICUT SERIES
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier Insured Municipal Bond
Fund, Connecticut Series (one of the Series constituting the Premier Insured
Municipal Bond Fund) as of January 31, 1995, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended January 31, 1995. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepting
auditing standards, the statement of changes in net assets and financial
highlights for the period from May 5, 1994 to July 31, 1994 and in our report
dated September 9, 1994, we expressed an unqualified opinion on such
statement of changes in net assets and financial highlights.
(Logo Signature)
New York, New York
March 7, 1995
PREMIER INSURED MUNICIPAL
BOND FUND, CONNECTICUT SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 129/377SA951
Semi-Annual Report
Premier Insured
Municipal Bond Fund
Connecticut Series
January 31, 1995
